According to the ‘Superannuation: Assessing Efficiency and Competitiveness’ report, the super system reveals mixed performance.
And also, the commission argued that, ‘Australia’s super system needs to adapt to better meet the needs of a modern workforce and a growing pool of retirees.’
There are 6 revisions in the fund operator;
- (Some of the funds are) Significantly underperformed, and even continue after they change investment strategy.
- Excessive and unwarranted fees in the super system.
- Cost savings in the fund doesn’t move to member’s interest.
- About 10 million accounts are unintended multiple accounts.
- Super system serves accurate information, but that is too complex and uninformative for members.
- Not all members using insurance in the super accurately.
There are 3 revisions in the regulation;
- Competition between funds is superficial, and shown unhealthy competition.
- The default segment underperforms the system on average.
- Regulations focus too much on the interests of funds and not members.
There are 4 revisions in the government policy;
- Basically, default should be the system exemplar.
- All MySuper and choice products should have to evaluated in outcomes tests.
- All trustee boards need to appoint skilled board members for better management.
- Regulators need clearer roles for member’s voice.
